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Tap China-ASEAN Fund, firms urged

Philippine companies are encouraged to avail themselves of equity investment fund that provides capital support to outstanding firms in both China and the ASEAN region to grow their businesses.

Patrick Ip, Principal of China-ASEAN Capital Advisory Co. Ltd., said the China-ASEAN Investment Fund prioritizes public infrastructure, banking, agriculture and other sectors, such as consumption, logistics, health care and even those that benefit from the urbanization and the growth of the middle class.

The target size of the fund’s phase one is $1 billion to $10 billion. It is one of the largest equity funds with Chinese background focusing on the ASEAN region.

Ip said investment sizes range from $24 million to $150 million.

”I think the most important is to enjoy our equity support, and other support we can provide to you in terms of adding more value to (your) company, help your income to grow. We tend to improve operations, we spend time on financial management, we spend time on strategic business and financial improvement,” he said in a recent interview.

Ip noted that since the inception of the investment fund in 2001, his group has so far partnered with only one Philippine firm, Negros Navigation Co. Inc.
   
”China will assess as to how much and when and whether to invest in the company. The funding will come from China,” he said.
   
Ip cited the need for the Philippines to invest more, especially in infrastructure at par with other ASEAN members.
   
“If you want to expand further your consumption, you (need to) deliver more products to the end-customers, you need to ship, you need warehouse. The infrastructure will increase the consumption in this country further,” he added.